EMGS Confirms Equinor Contract Award

Electromagnetic Geoservices (EMGS) has confirmed the contract award from Equinor with a value of approximately USD 8 million.

The final contracts are in accordance with the terms of the letter of intent, signed in February 2019, and includes both licensing of Barents Sea, Norwegian Sea and North Sea data from the company’s existing multi-client library.

It also includes prefunding for a new multi-client acquisition in the North Sea.

Of the combined gross contract value of approximately USD 8 million, EMGS expects to recognize approximately USD 7 million of revenue in the first quarter of 2019.

Bjørn Petter Lindhom, CEO of EMGS, said: “EMGS is very proud of the confidence vote these multi-client contracts represents and exited that Equinor chooses to license data from the North Sea and the Norwegian Sea as well as committing to prefunding a new multi-client survey in the North Sea. This shows, in our view, that CSEM provides valuable information to operators in all areas of the NCS.”

With these contracts, the company’s liquidity situation is materially improved. EMGS is continuing its efforts to secure other material late sales opportunities.